Is there a fee associated with extending the deadline to sign a lease for a Fat Shack restaurant?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
You must select your Restaurant Location and sign a lease or otherwise acquire the right to use the location within 270 days of signing the Franchise Agreement. We will extend this deadline for up to three successive 90-day periods if (i) factors beyond your reasonable control prevent you from meeting the applicable deadline, (ii) you have made reasonable and continuing efforts to obtain and submit for approval an acceptable site and lease, (iii) you deliver a written request to extend the time to sign a lease at least five days prior to the applicable deadline, and (iv) for any extensions past the first 90-day extension, at the time you deliver the written request to us, you pay us the Site Acquisition Extension Fee for each additional 90-day extension period. You do not have any right to extend these deadlines if you are otherwise in default of the Franchise Agreement or any other agreement with us.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 28–36)
What This Means (2025 FDD)
According to the 2025 Fat Shack Franchise Disclosure Document, franchisees are initially given 270 days from the signing of the Franchise Agreement to secure a restaurant location and sign a lease. However, Fat Shack permits franchisees to extend this deadline for up to three additional 90-day periods under certain conditions.
For the first 90-day extension, there is no mention of a fee. However, for any extensions beyond the initial 90-day period, Fat Shack requires the franchisee to pay a "Site Acquisition Extension Fee" at the time they submit a written request for the extension. The specific amount of this fee is not disclosed in the provided FDD excerpts.
To qualify for any extension, the franchisee must demonstrate that factors beyond their control are preventing them from meeting the original deadline. They also need to show that they have been actively and continuously trying to find and submit an acceptable site and lease for approval. Additionally, the franchisee must not be in default of the Franchise Agreement or any other agreement with Fat Shack to be eligible for an extension.